The Department of Transport in Ho Chi Minh City yesterday proposed to the city People’s Committee a plan allowing advertisement on 40-seater buses in a bid to increase income and reduce governmental subsidizes on bus operation.
The Department launched a pilot plan in April on 171 buses collecting over VND14.6 billion (US$654,000), exceeding the department's original expectations by 40 percent. After implementation of piloted time, many companies registered to put advertising on buses.
It is predicted that the city will collect an amount of VND170 billion (US$7,643) a year if it allows a mass advertising on 2,344 40-seater buses. The collected amount is expected to reduce state subsidizes on bus operation.
In 2015 the government spent VND927 billion (US$41.6 million) on subsidizing bus operation. In 2002 and earlier, bus enterprises allowed placing advertising on bus and they enjoyed the payment. Since the government subsidized bus operation from 2002 now on, advertising on buses halted.
Until 2015 in many meetings with the Economic and Budgetary Committee under the city People’s Council, representatives from related agencies said that tardiness in advertising on buses caused loss to compensate state budget which had been spent on bus subsidizes.
In bus advertising, buses and their related infrastructure are used by advertisers to reach the public with their message. Usually, this takes the form of promoting commercial brands, but can also be used for public campaign messages.